Regent Inns has signed a £7.2m sale-and-leaseback deal on three of its properties, including two Walkabout venues.

The deal, with St James Capital Property, involves Regent leasing back the three properties for the next 35 years for a rent of £559,000.

The sites involved are Walkabout, Portsmouth including the three floors of offices above; Walkabout, Wolverhampton; and the Stone House, Hertford. The three properties had a net book value of £4.2m.

Regent said the proceeds of the sale will be used to reduce debt. Its chief executive, Stephen Haupt, said: "Regent is focused on operating late night, entertainment-led bars, not on managing large-scale properties. This transaction will allow us to reduce bank debt and gearing and to further strengthen our balance sheet."